NCERT Solutions Class 7 Social Science Chapter 12 Understanding Markets

The NCERT Solutions for Class 7 Social Science, Chapter: Understanding Markets, explore the complex network of buying and selling that surrounds us. This chapter moves beyond simple marketplaces to illustrate the 'chain of markets'—from the producer to the final consumer. It describes various market types, such as weekly markets, shopping complexes, and even online stores, and highlights the crucial roles of traders, wholesalers, and retailers.

The NCERT Solutions offer precise and easy-to-grasp answers to all textbook questions, simplifying revision. This chapter is vital for students to understand how markets function, who the key players are, and, most importantly, how equity and fairness in the market affect ordinary people.

1.0Download NCERT Solutions Class 7 Social Science Chapter 12 Understanding Markets: Free PDF

Download the NCERT Solutions for Class 7 Social Science Chapter 12 Understanding Markets in our free PDF, meticulously crafted by academic experts for effective learning and thorough exam preparation.

2.0Important Concepts of Class 7 Social Science Chapter 12 Understanding Markets - Brief Explanation

The chapter, “Understanding Markets,” from the Class 7 Social Science textbook, explains the system that enables the exchange of goods and services. It helps students recognise the different types of markets they encounter and the economic connections that link them.

Concepts Covered in this Chapter:

• What is a Market?
• • Any place or arrangement where buyers and sellers come together for an exchange.
• Types of Markets:
• • Weekly Markets: Temporary markets held on a specific day of the week, offering a range of goods at cheaper prices.
  • Shop in a Neighbourhood: Permanent, local shops offering regular, year-round services and goods.
  • Shopping Complexes and Malls: Enclosed, multi-storeyed air-conditioned buildings with shops selling branded and expensive goods.
  • Chain of Markets: The interconnection of markets, from raw material producers to the final consumer, involving wholesalers and retailers.
  • Market Everywhere: The concept that markets aren't just physical places; they include telephone and internet orders (e.g., e-commerce).
• Wholesalers and Retailers:
• • Wholesaler: A trader who buys goods in large quantities from producers and sells them to retailers.
  • Retailer: A trader who buys goods from a wholesaler (or producer) and sells them directly to the final consumer in small quantities.
• Markets and Equality:
• • The chapter highlights the differences in earnings and working conditions between small traders/workers in weekly markets and the owners of large shops in malls.
  • It raises the issue of whether markets offer equal opportunities and fair wages to everyone in the 'chain.'
• Key Idea: The price of a commodity often depends on where and how it is sold, and different markets cater to people with different levels of income.

This chapter teaches students that markets are not just transactional places but are also deeply tied to issues of social and economic justice and development in the community.

3.0NCERT Class 7 Social Science Chapter 12 Understanding Markets - Detailed Solutions

• What are the main features of a market? Recall a recent visit to a market to purchase a product. What are the different features of a market that you observed during this visit? Ans. A market is a place where buyers and sellers interact to exchange goods and services. The main features of a market include the presence of buyers and sellers, price determination through demand and supply, availability of multiple products, and competition among sellers. During a recent visit to a vegetable market, I observed that there were many stalls selling the same type of vegetables at different prices. Some vendors allowed bargaining, while others had fixed prices. The market was crowded, and fresh produce was being restocked continuously.
• Remember the epigraph from a famous economist at the beginning of the chapter? Discuss its relevance in the context of the chapter you have read. Ans. The epigraph at the beginning of the chapter provides insight into how markets function and influence economic activities. It is relevant because it highlights key aspects such as demand and supply, pricing, competition, and the role of buyers and sellers. Understanding the quote helps in relating economic theories to real-life market situations.
• In the example of buying and selling of guavas, imagine that the seller is getting a good price, and is able to make a profit. He will try to get more guavas from farmers to be able to sell them at the same price and increase his earnings. What is the farmer likely to do in this kind of a situation? Do you think he will start thinking about the demand for guavas in the next season? What is likely to be his response? Ans. If the seller gets a good price for guavas, he will demand more from farmers. The farmer, noticing the high demand, may try to produce more guavas in the next season to increase his income. He might also consider expanding his farmland, using better farming techniques, or storing guavas to sell when prices rise. However, he will also assess market trends to avoid overproduction, which could lead to lower prices.
• Match the following types of markets with their characteristics:

• Prices are generally determined by the interaction between demand from buyers and supply by sellers. Can you think of products where prices are high despite lesser number of buyers demanding the product? What could be the reasons for that? Ans. Some products remain expensive despite having fewer buyers due to factors like exclusivity, branding, and production costs. Examples include luxury cars, designer clothing, rare antiques, and limited-edition electronics. These products are priced high due to their uniqueness, high-quality materials, and brand value, making them desirable to a select group of buyers.
• Look at the real life situation that a retail seller of vegetables encountered: A family came to shop for vegetables. The price of beans that the seller on the cart was offering was? ₹ $30/\mathrm{kg}$. The lady started to bargain with the seller to bring the price down to ₹ $25/\mathrm{kg}$. The seller protested and refused to sell at that price saying he would make a loss at that price. The lady walks away. The family then goes to a super bazaar nearby. They buy vegetables in the super bazaar where they pay $₹40/\mathrm{kg}$ for the beans that is neatly packed in a plastic bag. What are the reasons that the family does this? Are there factors that affect buying and selling Which are not directly connected to price? Ans. The family may have bought vegetables at a higher price from the super bazaar due to convenience, cleanliness, better packaging, or trust in the store's quality. Factors like hygiene, availability of multiple products in one place, and a preference for organized retail stores also influence buying decisions. Sometimes, customers are willing to pay more for perceived quality and shopping experience rather than just focusing on the price.
• There are some districts in India that are famous for growing tomatoes. However, during some seasons, the situation is not good for farmers. With a large quantity of harvest, there are reports of farmers throwing away their produce and all their hard work going to waste. Why do you think farmers do this? What role can wholesalers play in such situations? What are the possible ways of ensuring that the tomatoes are not wasted, and the farmers are also not at a loss? Ans. Farmers throw away tomatoes during a surplus season because excessive supply leads to low prices, making it unprofitable to sell them. Wholesalers can help by buying in bulk at a reasonable price and distributing them to different regions. Possible solutions to prevent wastage include setting up food processing industries to make tomato-based products, government support in price regulation, better storage facilities, and linking farmers to alternative markets to ensure they get fair prices.

4.0Key Features and Benefits of Class 7 Social Science Chapter 12 : Understanding Markets

• Connecting the Market Chain: Helps students trace the journey of a product from the producer (e.g., a farmer) to their hands, highlighting the roles of various traders.
• Variety of Marketplaces: Provides an understanding of different market forms—from local street vendors to global e-commerce—making the economy relatable.
• Focus on Equity: Introduces critical social issues by comparing the earnings and working conditions of different market players (e.g., a small vendor vs. a mall owner).
• Real-Life Economic Concepts: Clearly explains the difference between wholesalers and retailers, key players in any economy.
• NCERT-Aligned Solutions: Offers step-by-step, accurate answers that adhere strictly to the NCERT textbook, aiding efficient exam preparation.